Universities across the country are currently opening their doors to welcome back hordes of incoming students. If you’re not sending a kid off to college this year but you will be in the future, listen up. In case you didn’t know, college is expensive.
The College Board puts the average tuition cost at a public four-year university at $22,958 for out-of-state students. If your son or daughter wants to go to a private university, you can expect the average tuition bill to come to $31,231. That’s per year, so for a four-year degree, the final price tag comes to $124,924.
As if that wasn’t startling enough, here’s something else to think about: beyond the tuition, there’s a lot more that goes into paying for college.
In fact, there’s a whole laundry list of expenses that can drive the total even higher. If you’re planning to foot some or all of the bill for your child’s college education, here are the extra costs you can’t afford to overlook:
1. Activity fees
If your student’s looking to get involved in campus organizations, be prepared to pay for it. Joining an athletic team, becoming a part of a fraternity or sorority or testing their acting chops in the school’s drama club are good ways to get to know other students and build up their resumes but these activities aren’t free. Whether it’s equipment fees, dues, or membership fees, you can expect to shell out more money for any extras your child takes part in.
2. Travel
Sending your kid off to school three states away automatically means paying more in tuition if they’re not a resident, but it can cost you on another front. If they drive or fly back home several times a year, that’s more money that could be coming out of your pocket. Opening up a travel rewards credit card account and adding them as an authorized user is a smart way to earn back some of what you’re spending while also helping your student to build up their credit score.
3. Study abroad
Spending a semester or two in a foreign country can be a once-in-a-lifetime experience, but it’s not exactly cheap. Not only do you have to cover the cost of attendance at an overseas university but you also have to pay for airline tickets for your student to get there and back, plus chip in money for basic living expenses while they’re away from their home turf.
4. Housing and meals
Room and board is a separate charge from tuition. If your student’s staying on-campus, they’ll have to pay something to live in the dorm. Meal plans are optional but again, these are extra on top of tuition. If your child decides to live off-campus, that’s an entirely different can of worms. In that scenario, you’ve got to add rent, utilities, renter’s insurance and groceries into your college budget.
That doesn’t include the cost of making their new place livable. In a dorm room, you may only be looking at buying the basics like sheets, comforters or curtains since furniture is already provided. If they’re renting an apartment on the other hand, they’ll need a few staple pieces of furniture like a sofa and a bed at the very least.
5. Parking and transportation
Depending on where your child decides to go to school, they may or may not be able to take along a vehicle. If they’re able to drive on-campus, they’ll need a place to park. They can either get a parking pass each semester to park in a lot or garage or feed the meter to park at the curb. Just remember that if their meter expires, they could get a parking ticket which is even more money to fork over.
Beyond the parking tab, there’s also gas, maintenance, and insurance to factor in. Registration fees, property taxes, and annual inspections are other costs you’ll have to account for.
6. Bank fees
A bank account is a must-have for any college student, especially if you’re trying to teach them good money habits. Choose the wrong bank, however, and you might regret it if they’re being charged an excessive amount of fees. Online banks tend to have fewer fees but if you need the convenience of a brick-and-mortar location, look for a bank that doesn’t charge a monthly service fee or minimum balance fee to set up a checking account.
7. Graduation costs
Getting through college is no small accomplishment and when the time comes, there’s still one more thing to pay: graduation fees. That includes the cost of attending the ceremony, the cost of the diploma and the cost of renting a cap and gown. Don’t wait to register, either. There’s another fee that gets tacked on if you pay late.
Besides all that, there’s also the expense of throwing a graduation party or buying your new grad a gift. Even if you go with something small, like a watch or a couple hundred dollars in cash, it all adds up.
Start planning for college now
If you’ve still got years to go before your child is ready for college, time is literally on your side. Saving money in a 529 account or even a regular savings account can help you minimize the financial bite. While student loans aren’t a perfect solution, you and your child shouldn’t discount them if paying for college means you have to sacrifice your own financial goals.
How are you saving for your student’s college?
